Sports Direct shares rally as founder Mike Ashley takes over as CEO

Sports Direct International PLC founder and major shareholder Mike Ashley is taking over as chief executive of the company following the shock resignation of long-time CEO Dave Forsey. The leadership change, effectively immediately, comes after a difficult period for the sports-wear retailer, which has been criticized for its working conditions at its Shirebrook warehouse. A report from the Sports Direct’s own solicitors pointed out that now-former CEO Forsey failed to alert the board about the problems at Shirebrook and ignored warning signs. The company said in a statement Forsey has “agreed to facilitate a smooth handover of his responsibilities.” Sports Direct shares surged 7.4% in London.

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